>> bill shultz, that's awesome. jim norton, great job. that does it for me. i'm greg gutfeld. see you next time at some point. ns the small business aid package but what about tax cuts expiring at the end of the year? democrats aim to curtail the outsourcing of american jobs. and the federal government wants to monitor your internet-based communications. live from our studio in washington, dc, this is "special report." good evening. small business is set to be the engine that drives the economy. today, president obama took a step to inject fuel into that engine. white house correspondent reports on the signing of a bill the president hopes will jump start the economy now. while a potential engine-killing tax increase loops down the road. >> the measure provides tax cuts and credits and increase in

government loan money for small business owners that are reeling from a punch by the recession. >> the downturn meant people spend less so there is less demand and the financial crisis mate idi for small business to get loans. >> the tax measures go into effect immediately to encourage business owners not to wait for next yourer to invest in new equipment or add health care coverage. and 1,400 got welcome news about the small business administration loan applications. >> when i sign this bill their wait is over. it will be over. >> the measure passed congress with little support from republicans would say more small businesses will be helped by extending the bush administration tax cuts for people making more than $250,000 a year. house minority leader condemned the idea of putting off a vote until after the election. >> we leave here this week and adjourn without preventing the tax increases on the american

people it will be the most irresponsible thing i have seen sense i have been in washington, dc and i have been here a while. >> the white house says we cannot afor the tax cuts but california republican thinks growing text support for doing so explains how speaker people less emphasis reluctance to schedule a vote. >> she is afraid. >> most think the $800 billion stimulus program would have produced more private sector jobs by now if it had more tax cuts and less government spending. >> we borrowed stimulus money. we spent to hire new federal government, sent it to states so they would not have to lay off state workers. >> the unemployment is stuck at 9.5 percent but president obama denies we're in a jobless recovery. >> it is not that this is jobless recovery we have seen eight months of private sector job growth. >> but they are creating jobs faster than after the last recession. >> the problem is we lost so many jobs because of the crisis

that we have a much bigger hole to fill. >> democrats think the bill the president signs will create half a million jobs which is not enough to fill the hole and they will not be created fast enough to keep republicans from asking, where are the jobs each kay between -- each day between now and the elections. >> democrats say a way to boost employment is keep american jobs from going overseas but republicans and business are against legislation to stop what is called offshoring. our washington corporate tells us why. >>reporter: high unemployment is a major drag on the pro-specifics for democrats in the next election so they have seized on the issue of outsourcing of job. >> we will take away the incentives the corporations have to take the jobs overseas. but republicans and some democrats argue that the

democratic approach only punishes companies for trying to compete overseas. >> this bill could hinder job creation in america and actually send american jobs overseas permanently. having the opposite affect of what it intends. >> the bill does three things to discourage jobs overseas with tax incentives and penalties giving a tax holiday for 24 months if a company fires an overseas worker and hires one here. >> we know temporary tax credit dozen not increase employment. >> it eliminates tax deductions. and, third, companies that close a plants leader and open one overseas could not defer taxes on profits as they now can on any products they sold back to american consumers. some say this has more to do with politics than jobs. >> this is all bogus, political posturing, election year politics. >> republicans note that

statistics show 90 percent of sales of u.s. operations overseas are aimed at overseas consumers not americans. >> many american companies establish operations abroad not to export jobs or for reasons of greed as some supporters charge but to break into the form marks and add new markets. >> pointing to the response of pepsi and other international companies, senator kyl said the record is clear when americans competes overseas, jobs increase at home as well but some democrats see it differently. >> what about jobs in our country? what about the people that work up this morning, unemployed in america, looking for work in this country, who could not find it? >> some democrats worry saying they fear it puts the united states at a disadvantage but the bill sponsors says it won't pass so for now it is a political statement, not law.

>> thank you. >> stocks were down, the dow lost 48 and s&p dropped 6.5 and nasdaq gained 11.35. the federal government wants to monitor communication options available to americans and others. our reporter has serious questions about the proposal. >>reporter: amid reports that the administration is working to draft legislation that could give the government better access to your electronic communications critics warn that providing a special back door for the feds could empower drug cartels and terror networks. >> it is hard to assure about privacy if the mandate is that the product be build in with a trap door to allow government access. the bad guys can find the trapped door, too. >> the proposals under consideration will not expand the government's authority to

access information but they could force companies to have framework in place to provide that information when requested. key components could include: mandating the companies have ability to quickly unscramble messages; foreign-based companies doing business in the united states could be required to have a domestic office to provide intercept," and developers could be forced to redesign their product to allow for interception. >> when human likes are at stake, we want to be able to in a quick fashion, be able to get as much evidence as possible to figure out who is at stake, what will happen, where it might happen. >> a woman who worked for president george bush came underfire each time his administration proposed expanding wiretapping of suspected terrorists. how will this administration do on capitol hill? >> the government should have a battle when you consider the implication for privacy and for

innovation, a last -- a lot of members will think twice about supporting this. >> you as for worries that service providers could be forced to compromise the security infrastructure they have guaranteed to the customers, f.b.i. general counsel says "they can promise strong protection but they need to figure how to provide us text." >> many express concerns of the price tag of development of the shortcuts worrying that small start-ups that have been the key to launching new innovation could be discouraged from competing at all. >> thank you. the justice department inspector general says that some f.b.i.ing as cheated on a test covering the policies of the bureau for conducting surveillance on americans. the agents broke the rules by taking an open book test, together, or obtaining an answer sheet. they are calling on the f.b.i. to discipline the agents and come up with a new test.

>> hezbollah is a model of tolerance? one thinks so. stay tunedf@@?????????

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>> now from the political grapevine, rutgers campus kicks off a new program this week called "project civility," a project aimed at exploring plightness and manners and foster respect among the state university community. pregnant leaders are looking to limit disruptive behavior such as texting in class. the faculty member coordinating the effort jokes that the name could be "project civility, got a problem with that." >> iranian president ahmadinejad has an unusual week in new york for the meeting at the u.n. and the new york post reports he had

a secret meeting with minister farrakhan but no details over what was said. a woman at a hotel bar started screaming at ahmadinejad and his group "you stoned my sister, you murderers." and he reported ahmadinejad displayed a fear of being rubbed out that bordered on paranoia. and finally, a cnn show was ended by suggesting that americans who oppose construction of a mosque could learn a lesson from hezbollah. conservative bloggers say hezbollah was accepting of diverse religions including jews but a quick check of interesting quotes from hezbollah leader produces these. 1998 "to the murders of the prophets, the grasses of apes and pigs, we say death to israel." and in 2002: if we search the

entire world for a person more cowardly, weak in mind and ideology and religion we would not find anyone like the jew." and american politics and the question of would has more star power on the stump? president obama? or former president clinton? our correspondent take as look from boston. >>reporter: facing prediction of big republican games president obama and former president clinton are keeping a busy slate of campaign stops. both are known for campaigning prowess but with president obama's approval rating at a low, democrat strategists says it is mr. clinton who makes the best vis on the trail arguing democrats can turn the economy around. the arguments are similar, but

bill clinton makes it effective, and big difference between the two is bill clinton has done it. president obama is trying to do it. >> democratic candidates are hedging to fully embrace president obama locked in a battle with surging republican, connecticut attorney general welcomed the president's fundraisers but distanced himself on issues. >> i know mr. president we will agree, and i expect on some occasions, we may disagree. but with president clinton the possibility of looping policy differences are for got were and he points out another key advantage. >> folks, know the great think about being ex, you can say what you want. he pulled no punches. >> they got wrestling federation lady in connecticut and witchcraft lady in delaware ... so far they have gathered up about everything from the tea party but the mad hatter.

>> the nation in the worst financial crisis in a generation, president obama could be a draw but he is carrying baggage. bill clinton has dumped all of his baggage and he is the star now. >> with analysts predicting a banner year for g.o.p. candidates it is up clear whether either has enough star power to close the enthusiasm gap, get democrats to the ballot and win independents where republicans have seized the moment up. president obama says chief of staff rahm emanuel needs to make up his mind whether he is going to leave to run for mayor of chicago. president obama made that comment during an interview broadcast today. >> rahm emanuel will have to make a decision quickly because running for mayor in chicago is a serious enterprise and i know this is something he has been interested in. >> fox correspondent reports multiple choices that rahm emanuel has been burning up the phone lines laying the ground

work for a run while he is still being paid by taxpayers to run the president's staff. >> president obama says he knows americans are hurting but the republican pledge to america won't help. we will talk about that with the top stars when we come back.

>> what we need is tax cuts for the middle class people who are struggling and if they get a tax cut they will spend it which means that a small business is potentially going to get a customer and we will see job growth. >> 31 democrats in the house, five democrats in the house agree with me not to raise taxes during a resemghts. >> if we leave and ascrown for the election without preventing the tax increases on the american people it will be the most irresponsible thing i have seen since i have been in washington, dc and i have been leader a while. >> republican leaders responding to democrats saying essentially

they will not have a vote on whether to extend the bush tax cuts before heading off to the election. new poll out today have the pollers saying republicans favored by 11 percent, the presidential poll, whether they vote for president obama is at 38 percent; and those favoring congressional republicans by 11-point margin over president obama to create jobs. and the next poll there. and at any rate, there you see it. 51 percent to 30 percent. and now our panel about this. senior write for the "weekly standard," and juan williams, and charles. steve, set the tail for us. the president stumped the small business lending bill saying it will change the dynamic for many small businesses. republicans say, big picture, it's the tax officers at the end

of the year. >>reporter: the white house is crazy to make this argument at this washington-directed bill which will affect some small business owners but even small business owners say it will not affects many of them, that it will change the economy. that is so impossible to imagine how they came up with this as the message. the bottom line and republicans everyone given a gift, there is in the going to an vote open the taxes before the election. that is clear. this is a gift. republicans can now go to the voters and say you had 20 months in office and you spent $1 trillion on a stimulus, $1 trillion plus on health care and regulated financial insurance constitutions and brought washington into the likes of people on a level we have in the seen in probably 50 years, but the one thing you could not find time to do was stop a tax hike on every system american in the country. that is the win thing you did not have time to do. and this is what democrats are going to have to defend as they

face the republican campaigns. >> we heard different explanations from the majority leader on fox news sunday, juan, and saying it is republic obstructionism preventing a vote. and calling it a "republican tax increase." which was a bit of political wording for the majority leader. what about this? >>reporter: i was listening to steve and thinking how people can see things so differently because what looks to me what is going on in washington is republicans have said unless we get the tax cuts for the very rich if this country, we are not going to allow a vote to go through that would give a tax cut to everyone who makes $250,000 or less. so i thought, well, that is what has been going on and you have democrats, 30-plus you mentioned, who have decided that politically they think it is untenable and they have taken the republican's position with i don't think, this is about job

creation, and tax cuts, and what we saw today was a small business today i would think that steve and republicans would be set bracing president obama, the president, focusing on job creation in a meaningful way but i am listening and i am hearing steve, say, no, this will hurt democrats on the campaign trail. for me it seems if republicans are the ones who are saying, the democrats kept you from having a tax cut, it is not credible. most americans are, i don't think that is the story i heard. >> charles? >> if i have to adjudicate between steve and juan he will be surprised i think that steve has the argument here. look, first of all, on the cuts be the reason that pelosi decided she would not hold a vote is because there was a rebellion of democrats over 30 democrats who rebelled and who have opposed her. it was not republican obstructionism but disarray among the democrats over an idea of raising taxes if a recession which is a bad idea.

second, on the issue of the bill that was passed which is $30 billion, essentially thrown away, it will have in affect whatever on employment but a way to ex-other government criminal over small business. on the one hand, the taxes on half of all of small business will go up on the 1st of january, over 10 percent, and government will take the money and if you are nice it will lend you some of it back. if you fill out the forms, if you are obedient and you do as the government wants. the most interesting number in the poll was less than 40 percent of americans want to reelect the president. and what is more anding, is the poll asked, if you look at him favorably and 66 percent do. so you have 2-1 who like him as a person and yet about half of

those would reelt locate -- reelect him so that means it is the policies. it is because he does not emot empty, but it is a right of center country and they will be swept away in november. >> what about the people who criticize the small business lending program saying that it is not the lending that they are concerned about but the business and the economy over all and whether they should be investing in their business and putting money off the side lines into the business in the face of a shaky economy that they are uncertain about going forward? >> everyone is uncertain but what we see from the numbers is the people are sitting on large store houses of capital that in terms of production -- it should in the be the issue for many companies. i am saying for small business, the ability to have additional capital they should be able to invest in employment, that would

be a big bonus. charles says we are, the government is trying to tell people what to do but the government is giving them a tax break and the government would be fool in. that is not saying here is what we want done to create more jobs for those out of work. >> it takes your money in a tax increase and returns it if you are nice. with interest. >>reporter: there was no tax increase. >> there was going to be. >> now are speculating opposed to what is happening. >> that is not speculation if it is in the voted on it will happen. it will happen for much. everyone who makes less than $250,000 we want a tax cut. who objects and says no, we cannot have that. >> that is interesting way to frame. way to frame is you have had 20 months in office, all branches of government, and you have not seep fit to stop the biggest tax increase in american history because you want, because you

are so dedicated to redistributing wealth that you will not stop what is an obvious, obviously going to be bad for the economy, the president him self said we should not raise taxes in a recession and, yet, this he is going to do it allowing it to happen. that is not leadership. >> deficits part of the consideration, paying for that is part of it. >> this is the problem the president faces, right now, he has to convince people if he wants to win the tax cut argument that he now, after $1 trillion in stimulus and little care he is now so concerned about gives that what he has to do is block this tax officer, or, block the tax cut to the rich. you like that? >> brought to you by red bull. thank you. this has been good, charles lost you. i better stop the fight. >> had to let it go.

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>> bret: finally tonight, some kickers here at the end of the show need very little explanation. tonight, we have one of those. basically, this award-winner transition speaks for itself. ♪ ♪ >> the obama administration says it's committed to ending "don't ask, don't tell" but says it wants it to be a more gradual process. dog